Fourth Quarter Financial Highlights
- Non-GAAP net revenues of $432 million and GAAP net revenues of $431 million
- Non-GAAP net income per diluted share of $0.27 and GAAP net loss per share of $2.26, including non-cash tax charge of $2.21 per share
- Operating cash flow of $55 million and free cash flow of $38 million
Fiscal Year Financial Highlights
- Non-GAAP net revenues of $1.71 billion and GAAP net revenues of $1.70 billion
- Non-GAAP net income per diluted share of $1.44 and GAAP net loss per share of $2.73, including non-cash tax charge of $2.24 per share
- Operating cash flow of $237 million and free cash flow of $159 million
Verifone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, today announced financial results for the three months ended October 31, 2013 (“Q4 FY13”) and fiscal year ended October 31, 2013 (“FY13”).
Revenues - Non-GAAP net revenues for Q4 FY13 were $432 million, compared to $489 million a year ago, a 12% decrease. Non-GAAP net revenues for FY13 were $1.71 billion, a 9% decrease compared to the $1.89 billion result for FY12. GAAP net revenues were $431 million for the latest quarter, compared to $485 million a year ago, an 11% decrease. For FY13, GAAP net revenues totaled $1.70 billion, a 9% decrease compared to the $1.87 billion total for FY12.
Earnings per Share - Non-GAAP net income per diluted share for Q4 FY13 was $0.27, compared to $0.76 a year ago. Non-GAAP net income per diluted share for FY13 was $1.44, compared to the $2.74 result for FY12. GAAP net loss per share for the latest quarter and FY13 was $2.26 and $2.73, respectively. In Q4 FY13, the company recorded a non-cash tax charge of $242M or $2.21 per share to establish a valuation allowance against a significant portion of its deferred tax assets. This accounting treatment reflects the company’s assessment of whether these deferred tax assets will be realizable in the future, but has no effect on the company’s ability to utilize these deferred tax assets, such as loss carry forwards and tax credits, to reduce future cash tax payments.
The table below provides additional summary non-GAAP and GAAP financial information and comparisons.
“I am pleased with our fourth quarter results, which exceeded our guidance,” said Paul Galant, Chief Executive Officer of Verifone. “We are witnessing the scale convergence of electronic payments, mobility, digital commerce and predictive analytics, and this is an exciting time to lead Verifone. The company has a global franchise, a growing services business, and a leadership position in enabling commerce for our clients. There is much work to do, and I am confident that the best for Verifone is yet to come.”
Additional Q4 Financial and Business Highlights
- Achieved record non-GAAP services net revenues of $173 million
- Deleveraged balance sheet, paying down $83 million of debt
- Partnered with American Express to enable passengers to use their Membership Rewards points to pay fares in New York City taxicabs
- Continued growth of payment as a service in the U.S., Latin America, Europe, Australia, and New Zealand
- Earned seven U.S. multi-lane retail wins, leveraging the company’s MX 900 and VX series products
- Completed rollout of Verifone’s next generation PAYware Mobile products with two Top 100 U.S. retailers.
- Selected to implement Egyptian Ministry of Finance-sponsored mobile payment solutions in petroleum stations across the country
- Won terminal and services contracts with two of India’s largest petroleum providers
Guidance for the first fiscal quarter of 2014 is as follows:
- Non-GAAP net revenues of $425 million to $430 million
- Non-GAAP net income per diluted share of $0.26
Guidance for the full fiscal year 2014 is as follows:
- Non-GAAP net revenues of $1.77 billion to $1.80 billion
- Non-GAAP net income per diluted share of $1.35 to $1.40
Verifone will hold its earnings conference call today at 1:30 pm (PT). To listen to the call and view the slides, visit Verifone's website http://ir.verifone.com. To listen to the call over the phone, dial (866) 700-5192 within the U.S., or (617) 213-8833 outside the U.S., and use conference passcode 6490 7466. The recorded audio webcast will be available on Verifone's website until December 24, 2013.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and on currently available competitive, financial and economic data and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to changes in economic, business, competitive, technological, and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of Verifone Systems, Inc., including many factors beyond our control. These risks and uncertainties include, but are not limited to, those associated with: execution of our strategic plan and business initiatives and whether the expected benefits of our plan and initiatives are achieved, short product cycles and rapidly changing technologies, our ability to maintain competitive leadership position with respect to our payment solution offerings, our assumptions, judgments and estimates regarding the impact on our business of the continued uncertainty in the global economic environment and financial markets, our ability to successfully integrate acquired businesses into our business and operations, our ability to protect against fraud, the status of our relationship with and condition of third parties such as our contract manufacturers, distributors and key suppliers upon whom we rely in the conduct of our business, our dependence on a limited number of customers, the conduct of our business and operations internationally, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, and our dependence on a limited number of key employees. For a further list and description of the risks and uncertainties affecting the operations of our business, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. The forward-looking statements speak only as of the date such statements are made. Verifone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
About Verifone Systems, Inc. (www.verifone.com)
Verifone Systems, Inc. (“Verifone”) (NYSE: PAY) is the global leader in secure electronic payment solutions. Verifone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. Verifone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.
Additional Resources: http://ir.verifone.com
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